Santander Pays for Mishandled Repos
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The Connecticut Department of Banking announced a settlement with Santander Consumer USA for alleged violations of the state’s banking laws concerning repossessions.In addition to providing $2.9 million in relief to affected consumers, Santander has paid a $100,000 fine and agreed to comply with all sales finance laws in Connecticut. Following a 2016 investigation, the Department of Banking alleges Santander failed to calculate accurately the balance owed on repossessed motor vehicles for some Connecticut consumers. In addition, the department alleges that Santander failed to provide written itemized statements to consumers showing how the proceeds of the sale of their repossessed vehicle were disbursed within 30 days, as required by law. Finally, the department alleges that Santander improperly charged convenience fees on payments made by credit or debit cards from Oct. 1, 2016 through Jan. 19, 2017. Under the terms of the settlement, Santander has already credited, refunded or waived $2.9 million in principal, interest and other fees and assessments, including convenience fees.